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The Freedom of Employment at Will
Bob Ryan, About Purpose, Inc. ©2002
The Fourth of July. Freedom. A stirring of gratitude for the system in which we are blessed enough to live. A wave of gratitude for those who make freedom real – in the past, present and future. I am very thankful for the freedom we have in this country.
As I reflect on our many freedoms, I think about our business climate. Here in Minnesota (as in virtually all states), employers enjoy the freedom of the Employment-at-Will doctrine. We may dismiss an employee, at any time, for any reason or no reason, without incurring any liability to the employee.*
*There’s a lot more to it than this simple statement. If you don’t understand Employment-at-Will, learn more by reading or searching the internet, and seek advice from a competent attorney. Here’s a good general description to start with: http://www.smartagreements.com/bltopics/Bltopi57.html |
This doctrine grants a tremendous amount of freedom to employers, creating a market milieu that favors the development and sustaining of business.
We all know that freedom is not license. The Employment-at-Will doctrine is not an excuse for poor human resource management. As a matter of practical fact, it places a responsibility on employers to cherish and use the freedom for the purpose for which it was intended – to build a strong business environment that fosters health and prosperity, creates jobs and improves the economy.
In the spirit of the Fourth, let me suggest a review of how you are using your freedom as an employer in an Employment-at-Will state. Think through the ideas in these four areas and then challenge yourself to take action to exercise the responsibilities that come along with the rights you have been given.
Hire? Or Outsource? One responsibility we have as employers is to hire appropriately in the first place. Especially in a tough economy, we can exercise caution in hiring so that we may not have to dismiss people in a downturn. In his book, The Human Equation: Putting People First, Jeffrey Pfeffer suggests outsourcing as many non-essential services as possible, therefore giving the company more freedom to ebb and flow with fiscal pressures without the harmful effects of layoffs. Yes, you can dismiss anytime for no reason, but is it beneficial? Pfeffer argues, “No.”
(Read my online report on Pfeffer’s book at http://www.About Purpose.com/bookreport.htm)
Replacement? Or Succession Planning? Another responsibility employers have is to plan for the future so that you can use human resources to their best advantage. Every company should have a succession plan in place for at least its key people. Grooming current employees to move into future positions makes a great deal more sense than replacing people with outsiders. Recent studies show that it takes one and half to two times annual salary to replace a management level employee, and that it takes an average of 13 months for the new person to learn the job.
Create an atmosphere in which employees share in the future of your company and you will find you will not need to use your “freedom to fire.”
Avoidance? or Assertiveness? How often have I heard employers say, “Why do I have to talk with him? Can’t I just fire him? This is an Employment-at-Will state.” Sorry, but that is a cowardly and passive/aggressive style of leadership. We owe employees the opportunity to grow and develop in their positions. The only responsible way to do that is to be an assertive employer, seeking out opportunities to develop. Every time we avoid confronting poor performance or behavior, we are diluting the rights and responsibilities we have to build strong employment environments.
It goes with the territory: if you want to be an employer, you have to take on the often uncomfortable task of coaching, training and even discipline.
Spend? Or Invest? Finally, we have the responsibility to create an environment in which employees are likely to thrive. If you know anything about Maslowe’s hierarchy of needs, you know that people are motivated by their needs at several different levels. We must create an environment in which people strive to meet their higher order needs of esteem and self-actualization. Once people’s basic needs are met, they seek a sense of belonging, dignity and self-worth. Look beyond the bottom line and think about how you are investing in people’s desire to create worth for themselves and your company.
Unless and until you meet your employees’ needs, they cannot meet yours.
A few last words: As you value the freedoms we celebrate around the founding values of our country, consider how you can build stronger employees. Take some action steps this week to exercise your freedom of Employment-at-Will in a way that creates a Will-to-Employ in a partnership that benefits, your business, your employees and all of us in this great country.